Sensex rallies over 350 points; fifteen stocks in action

NEW DELHI: The S&P BSE Sensex rallied over 350 points in mid-morning trade on Friday, backed by strong global cues and is trading above its crucial psychological level of 19,000.

The Nifty opened with a gap-up and climbed past important resistance of 5,750 on the back of strong gains index heavyweights ONGC and Reliance Industries after the Cabinet Committee on Economic Affairs (CCEA) approved of hike in price of natural gas.

At 11:20 a.m.; the 50-share index was at 5,786.20, up 104.85 points or 1.8 per cent. It touched a high of 5,794.70 and a low of 5,749.50 in trade today.

The S&P BSE Sensex was at 19,231.04, up 352 points or 1.8 per cent. It touched a high of 19,251.35 and a low of 19,093.18 in trade today.

"The Nifty is expected to head lower till 5632. In this period it will find a key support at 5632 and face resistance at 5710," said Somil Mehta, Senior Tech Analyst (Equity) at Sharekhan.

"The Nifty has been facing resistance around the 40-DMA and the 20-DMA, and been forming lower tops and lower bottoms on the daily chart," he added.

Mehta is of the view that the short-term bias for the Nifty remains negative for a target of 5477 with reversal around 5863. The medium-term outlook also remains negative with reversal above the 20-weekly moving average (WMA).

Here is a list of fifteen stocks which are likely to remain in focus in morning trade:

Bajaj Finserv Ltd, after the company said that it is in the race for applying for banking license. It is the holding company for the financial services businesses of the Bajaj Group.

At 11:20 a.m.; the stock was trading 2.2 per cent higher at Rs 649.50.

RIL, ONGC, OIL will be in focus after, the government approved near doubling of natural gas prices to $8.4 from April 1 next year, a move which will result in rise in power tariff, urea cost and CNG prices.

At 11:20 a.m.; RIL was trading 2.9 per cent higher at Rs 855, while ONGC gained 3.3 per cent to trade at Rs 331. Oil India Ltd was up 0.3 per cent to Rs 574.15.

Titan Industries, PC Jewellers, TBZ will be in focus, after RBI said that jewellery exporters will be permitted to avail loans from banks and other institutions to import gold, a move which is aimed at encouraging exports.

At 11:20 a.m.; Titan Industries was trading 0.6 per cent lower at Rs 222, while PC Jeweller was up 1.02 per cent to trade at Rs 94.15. While, TBZ was trading 0.9 per cent lower at Rs 176.95.

United Breweries Holding Ltd, after the Vijay Mallya-led UBHL is seeking shareholder approval to increase its borrowing limit by an additional R1,500 crore to finance the firm's activities.

At 11:20 a.m.; the stock was trading 1.4 per cent higher at Rs 21.95.

HDFC Bank Ltd, after the second largest private sector lender said income tax sleuths had conducted an enquiry on its following the Cobrapost expose.

At 11:20 a.m.; the stock was trading 2 per cent higher at Rs 659.15.

Bharti Airtel Ltd, after India's biggest mobile phone company, lost the race for two hotly-contested licences to Norway's Telenor and Qatar's Ooredoo in Myanmar, one of the last major unpenetrated telecom frontiers in the world.

At 11:20 a.m.; the stock was trading 2.7 per cent higher at Rs 288.85.

Amtek Auto and JMT Auto will be in focus, after India's leading forging and integrated auto component manufacturer Amtek Auto, on Thursday announced that it has acquired a 51.27 per cent stake in JMT Auto for about Rs 110 crore.

At 11:20 a.m.; Amtek Auto was trading 1 per cent higher at Rs 71.85, while JMT Auto was locked in upper circuit at Rs 121.95, up 5 per cent.

Neyveli Lignite Corporation (NLC), after the Unions at NLC have threatened to go on indefinite strike against the Cabinet Committee on Economic Affairs (CCEA's) clearance to the government for diluting 5% stake in NLC.

At 11:20 a.m.; the stock was trading 1.9 per cent higher at Rs 56.

Dewan Housing Finance Ltd (DHFL) and DLF will be in focus, after the third largest housing finance firm in the country, has entered into negotiations to acquire majority stake in DLF Pramerica Life Insurance Company, a joint venture with US-based Prudential Financial.

At 11:20 a.m.; Dewan Housing was trading 1.2 per cent higher at Rs 161.95, while DLF was up 1.6 per cent to trade at Rs 179.